If you’re using Sage 50 Payroll or Sage Business Cloud Payroll, the legislation tables and settings in your software will update either automatically or if you install the update.
From 8th March 2022 installing this update became mandatory, meaning you can’t access your software until you do the update.
In the Spring budget last year it was announced that thresholds for both personal allowance and higher rate tax would be frozen until April 2026 at the current rates of £12,570 and £50,270. This of course means that this year the rates you pay will remain the same.
In England, Wales and Northern Ireland the brackets are as follows:
- £1 – £37,700 – Basic Rate at 20%
- £37,701- £150,000 – Higher Rate at 40%
- Over £150,000 – Additional Rate at 45%
National Insurance contributions
Class 1 thresholds for 2022/2023 are as follows:
- Weekly lower earnings limit £123
- Weekly primary threshold £190
- Weekly secondary threshold £175
- Upper earnings limit £967
- Upper secondary threshold for under 21’s £967
- Apprentice upper Secondary threshold for under 25’s £967
National insurance for both employers and employees rises by 1.25%.
Employers currently pay 13.8% so this increase will take them upto 15.05%
Employees currently pay 12% this will increase to 13.25% and the upper earnings limit from 3% to 3.25%.
“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”